Boots posts record £1.07bn profits

Alliance Boots posted trading profits of 1.07 billion pounds in the year to March 31

High street giant Alliance Boots has pushed profits above £1 billion for the first time and mapped out future growth plans despite "challenging" conditions.

The pharmacist and wholesaler posted trading profits of £1.07 billion in the year to March 31 - up 12.7% on a year earlier - helped by launches such as No 7 Protect & Perfect skincare.

The firm expects consumer conditions across Europe to remain "subdued" but is banking on a series of tie-ups with other businesses to boost revenues.

Boots is poised to launch a new children's clothing range from Mothercare, and is trialling the sale of health and beauty products in selected Waitrose stores, with the supermarket's food sold in its own outlets.

Executive chairman Stefano Pessina said: "We are increasingly establishing strategic partnerships with other leading businesses to accelerate our development, both in the UK and other markets."

The company - which was taken private in an £11.1 billion takeover in 2007 - becomes the third UK retailer to post profits of more than £1 billion behind Tesco and Marks & Spencer.

The group employs 75,000 staff in the UK, with 2,500 health and beauty stores and 670 opticians.